Reportstack

Kenya Telecommunications Report Q3 2014

Naperville, IL -- (SBWIRE) -- 06/16/2014 -- Reportstack, provider of premium market research reports announces the addition of Kenya Telecommunications Report Q3 2014 market report to its offering
The Kenya telecoms market is undergoing a number of key developments, with Yu Mobile
finalising a deal to sell its assets to rivals Safaricom and Airtel, while Telkom Kenya (Orange) is also
undergoing sale procedures to exit the market. Downward pressure on voice revenues, low ARPUs and the
high instance of prepaid subscriptions due to fierce competition has come to a head in the first months of
2014 and may get worse following the licensing of MVNOs. This points to the growing difficulty of
operating in the country, when Safaricom, and its M-Pesa service, maintains a stranglehold on customer
additions and makes it almost impossible for other operators to effectively compete and regulators to curb
its position. The establishment of a new regulator, the Information and Communication Technology
Authority of Kenya (ICTA) will be given more powers to bring down Safaricom's dominance, but we believe
it will be hard-pressed to do so. Nevertheless, penetration remains low and our five-year forecast, through
to 2018, reflects the slow and steady growth we expect in the mobile sector. The fixed-line sector is
characterised by the introduction of converged services for corporate and residential users, growing
competition in the sector and downward pressure from fixed to mobile substitution.
Key Data
? Kenya's mobile market grew by 1.9% y-o-y in 2013 to bring the total subscribers to 31.308mn.
? Mobile ARPU declined by 0.2% in2013, consolidating at KES442.9 for the year .
? The fixed-line sector contracted by 18.2% in 2013 and finished the year with 2.059mn subscriptions.
? The number of internet users in Kenya increased by 31% in the 12 months to December 2013.